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WHAT IS FINANCIAL PLANNING?  Financial planning means deciding in advance how much to spend, on what to spend according to the funds at your disposal.  In the words of Gerestenbug financial planning includes: 1. Determination of amount of Finance needed by an enterprise to carry out its operations smoothly. 2. Determination of source of funds ,i.e ,the pattern of securities to be issued.  3. Determination of suitable policies for proper utilisation and administration of funds.  Importance of financial planning 1. It facilitates collection of optimum funds. The financial planning estimate the exercise equipment of funds which means to avoid wastage and over capitalisation situation.  2. It help in fixing the most appropriate capital structure Funds can be arranged from various sources and are used for long term, medium term and short term. Financial planning is necessary for tapping appropriate sources at appropriate time as long term funds are genera

7 FACTOR AFFECTING FINANCING DECISIONS.  While taking financing decisions the finance manager keep in mind the following factors: 1. Cost :  The cost of raising finance from various sources is different and Finance manager always prefer the source with minimum cost.  2. Risk :  More risk is associated with borrowed fund as compared to owner's fund securities. Finance manager compare the risk with the cost involved and preferred securities with moderate risk factor.  3. Cash flow position :  The cash flow position of the company also helps in selecting the securities. With smooth and steady cash flow companies can easily afford borrowed fund securities but when companies have shortage of cash flow, then they must go for owner's fund security only.  4. Control considerations : If existing shareholders want to retain the complete control of business then they prefer borrowed fund securities to rise further fund. On the other hand if they do not min

12+1 SAlES PROMOTION TECHNIQUES FOR CUSTOMERS.  Some of the sales promotion activities commonly used by the marketer to increase the sale are: 1. Rebate.  It refers to selling product at a special price which is less than the original price for a limited period of time. This offer is given to clear off the stock or excessive inventory for example , coke announced 2 litre bottle at 35 Rs only.  2. Discounts.  This refers to reduction of certain percentage of price from list price for a limited period of time. The discount induce the customer to buy and to  buy  more. Generally at the end of season big companies offer their products at discounted price to clear off the stock . E. g., Season's sale at show-white jain son's, Paul garments, Bhuvan garments, etc.  3. Refunds This refer to refund or part of price paid by customer on presenting the proof of purchase for example, Rs 2  off on presentation of empty  pack of ruffle lays.  4. Premiums or gift or pro

CBSE CLASS 12TH BUSINESS STUDIES REVISION NOTES CHAPTER-4  PLANNING Introduction All organisation whether it is government, a private  business or small businessman require  planning. To turn their  dreams  of increase in sale, earning high profit and getting success in business all businessman have to  think about  future, make predictions and  achieve target. To decide what to do , how to do and  when to do they planning. Meaning of planning Planning can be defined as "thinking  in advance what is to be done, when it's to be done, how it's to be done and by whom it should be done." In simple words we can say planning bridge the gap between where we are standing today and where we want to reach. Definition of planning by different authors: "Planning is the thinking process, the organised foresight, the vision based on facts and experience that is required for intelligent action."  -Alfred and beatty.   "Planning is ch